It’s a cynic’s budget, built for elections

Going into yesterday’s federal budget, the Harper government had only one discernible priority and that was disposing of its deficit by 2015 — or at least appearing to do so. But don’t hold your breath. This government has failed to meet every single projection it has ever made.

A chronic string of Conservative deficits began in 2008. They were self-inflicted, starting before (not because of) the global recession. Mr. Harper had been over-spending at three times the rate of inflation. He recklessly dismantled federal contingency reserves and prudence factors designed to guard against adverse events. And he’s been mired in red-ink ever since, adding about $150 billion to the accumulated federal debt.

Yesterday’s budget projects a razor-thin surplus by 2015-16, but the arithmetic is highly suspect. It relies on gushy estimates of future economic growth, tiny reserves against unexpected problems, a manipulated downturn in infrastructure funds for municipalities, and very optimistic expectations about Revenue Canada catching tax cheaters.

In addition to postponing his long-promised expansion of infrastructure money for another three years (until after he claims to balance the books), he has also betrayed provinces and businesses looking for urgent action on job training.

This is a big issue in a growing province like Saskatchewan. We have a real shortage of new workers with the right skills. But the Conservatives are offering just years of lip service — with no new resources. Existing federal funding is frozen at 2007 levels. Any new investment will have to come from provincial governments or the private sector.

For aboriginal people, there is nothing to fill the disgraceful gap between what the provinces invest per child in the K-12 education of non-aboriginal kids and the much lower amount invested by the feds in First Nations children on reserve. Neither does the budget get rid of the “cap” that limits aboriginal access to post-secondary schools.

This budget continues to escalate Conservative job-killing EI payroll taxes by some $600-million every year. It does nothing to ease youth unemployment. It won’t help lower-income people get access to family tax credits. It fails to allow Canadians to voluntarily top up their savings in the Canada Pension Plan … the list goes on.

Why all this neglect and indifference?

Because Mr. Harper puts his political vanity ahead of the economic well-being of middle class Canadians. They are the ones who need a proactive budget aimed at greater fairness and real growth. But they’ll never get it from Stephen Harper.

Canada’s former finance minister, Ralph Goodale, is the Member of Parliament for the Regina-area constituency of Wascana and deputy leader of the Liberal Party of Canada. He holds the distinction of being selected by his peers as Canada’s first-ever “Parliamentarian of the Year” in 2006.

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